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Register a new userImproving Sustainability of Cryptocurrency Payment Networks for IoT Applications
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Added by
Suat Mercan
Publication date
2020
fields
Informatics Engineering
and research's language is
English
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Blockchain-based cryptocurrencies received a lot of attention recently for their applications in many domains. IoT domain is one of such applications, which can utilize cryptocur-rencies for micro payments without compromising their payment privacy. However, long confirmation times of transactions and relatively high fees hinder the adoption of cryptoccurency based micro-payments. The payment channel networks is one of the proposed solutions to address these issue where nodes establish payment channels among themselves without writing on blockchain. IoT devices can benefit from such payment networks as long as they are capable of sustaining their overhead. Payment channel networks pose unique characteristics as far as the routing problem is concerned. Specifically, they should stay balanced to have a sustainable network for maintaining payments for longer times, which is crucial for IoT devices once they are deployed.In this paper, we present a payment channel network design that aims to keep the channels balanced by using a common weight policy across the network. We additionally propose using multi-point connections to nodes for each IoT device for unbalanced payment scenarios. The experiment results show that we can keep the channels in the network more equally balanced compared to the minimal fee approach. In addition, multiple connections from IoT devices to nodes increase the success ratio significantly.
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The last decade has experienced a vast interest in Blockchain-based cryptocurrencies with a specific focus on the applications of this technology. However, slow confirmation times of transactions and unforeseeable high fees hamper their wide adoption for micro-payments. The idea of establishing payment channel networks is one of the many proposed solutions to address this scalability issue where nodes, by utilizing smart contracting, establish payment channels between each other and perform off-chain transactions. However, due to the way these channels are created, both sides have a certain one-way capacity for making transactions. Consequently, if one sides exceeds this one-way capacity, the channel becomes useless in that particular direction, which causes failures of payments and eventually creates an imbalance in the overall network. To keep the payment channel network sustainable, in this paper, we aim to increase the overall success rate of payments by effectively exploiting the fact that end-users are usually connected to the network at multiple points (i.e., gateways) any of which can be used to initiate the payment. We propose an efficient method for selection of the gateway for a user by considering the gateways inbound and outbound payment traffic ratio. We then augment this proposed method with split payment capability to further increase success rate especially for large transactions. The evaluation of the proposed method shows that compared to greedy and maxflow-based approaches, we can achieve much higher success rates, which are further improved with split payments.
Cryptocurrencies redefined how money can be stored and transferred among users. However, independent of the amount being sent, public blockchain-based cryptocurrencies suffer from high transaction waiting times and fees. These drawbacks hinder the wide use of cryptocurrencies by masses. To address these challenges, payment channel network concept is touted as the most viable solution to be used for micro-payments. The idea is exchanging the ownership of money by keeping the state of the accounts locally. The users inform the blockchain rarely, which decreases the load on the blockchain. Specifically, payment channel networks can provide transaction approvals in seconds by charging a nominal fee proportional to the payment amount. Such attraction on payment channel networks inspired many recent studies which focus on how to design them and allocate channels such that the transactions will be secure and efficient. However, as payment channel networks are emerging and reaching large number of users, privacy issues are becoming more relevant that raise concerns about exposing not only individual habits but also businesses revenues. In this paper, we first propose a categorization of the existing payment networks formed on top of blockchain-backed cryptocurrencies. After discussing several emerging attacks on user/business privacy in these payment channel networks, we qualitatively evaluate them based on a number of privacy metrics that relate to our case. Based on the discussions on the strengths and weaknesses of the approaches, we offer possible directions for research for the future of privacy based payment channel networks.
The successful amalgamation of cryptocurrency and consumer Internet of Things (IoT) devices can pave the way for novel applications in machine-to-machine economy. However, the lack of scalability and heavy resource requirements of initial blockchain designs hinders the integration as they prioritized decentralization and security. Numerous solutions have been proposed since the emergence of Bitcoin to achieve this goal. However, none of them seem to dominate and thus it is unclear how consumer devices will be adopting these approaches. Therefore, in this paper, we critically review the existing integration approaches and cryptocurrency designs that strive to enable micro-payments among consumer devices. We identify and discuss solutions under three main categories; direct integration, payment channel network and new cryptocurrency design. The first approach utilizes a full node to interact with the payment system. Offline channel payment is suggested as a second layer solution to solve the scalability issue and enable instant payment with low fee. New designs converge to semi-centralized scheme and focuson lightweight consensus protocol that does not require highcomputation power which might mean loosening the initial designchoices in favor of scalability. We evaluate the pros and cons ofeach of these approaches and then point out future researchchallenges. Our goal is to help researchers and practitioners tobetter focus their efforts to facilitate micro-payment adoptions.
Recent works have proposed new Byzantine consensus algorithms for blockchains based on epidemics, a design which enables highly scalable performance at a low cost. These methods however critically depend on a secure random peer sampling service: a service that provides a stream of random network nodes where no attacking entity can become over-represented. To ensure this security property, current epidemic platforms use a Proof-of-Stake system to select peer samples. However such a system limits the openness of the system as only nodes with significant stake can participate in the consensus, leading to an oligopoly situation. Moreover, this design introduces a complex interdependency between the consensus algorithm and the cryptocurrency built upon it. In this paper, we propose a radically different security design for the peer sampling service, based on the distribution of IP addresses to prevent Sybil attacks. We propose a new algorithm, $scriptstyle{BASALT}$, that implements our design using a stubborn chaotic search to counter attackers attempts at becoming over-represented. We show in theory and using Monte Carlo simulations that $scriptstyle{BASALT}$ provides samples which are extremely close to the optimal distribution even in adversarial scenarios such as tentative Eclipse attacks. Live experiments on a production cryptocurrency platform confirm that the samples obtained using $scriptstyle{BASALT}$ are equitably distributed amongst nodes, allowing for a system which is both open and where no single entity can gain excessive power.
This paper initiates the study of demand-aware payment channel networks: offchain cryptocurrency networks whose topology is optimized toward the demand (i.e., financial transactions) it currently serves. In particular, we present a model and optimization framework which allows to compute where to optimally establish virtual payment channels: virtual payment channels allow to avoid intermediaries when routing payments, and hence to reduce fees and latency; however, establishing payment channels also comes at a cost.
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